India overtakes Hong Kong to become Asia’s fourth-largest REIT market

New Delhi: The market value of India’s REITs rose 62% from the end of 2024 to March 2026, allowing India to surpass Hong Kong for the first time and become Asia’s fourth-largest REIT market by market value.

According to an analysis by Cushman & Wakefield, new listings, including Knowledge Realty Trust and Bagmane Prime Office REIT, substantially increased portfolio scale, adding a combined 53.7 million sq ft and accounting for around three-quarters of the total new space added to the six Indian REITs between June 2025 and June 2026.

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“India’s REIT market has reached an important inflection point, with larger listed portfolios, strong occupancies and a healthy development pipeline reinforcing its institutional depth. Demand from multinational companies and GCCs continues to favour high-quality, professionally managed office assets, while recent regulatory measures are widening the investor base and improving access to financing,” said Somy Thomas, Executive Managing Director, Capital Markets, India, at Cushman & Wakefield.

Office REIT occupancy remained high amid tightening Grade A vacancy, while sustained demand from multinational occupiers and continued expansion by Global Capability Centres (GCCs) remained key drivers. As of June 2026, six listed REITs collectively held approximately 178 million sq ft, with a further 36.7 million sq ft under construction or planned.

There were 289 active REIT products in Asia with a combined market value of $279.4 billion as of March 31, 2026, up 18% from the end of 2024. Mature markets such as Japan, Singapore and Hong Kong stabilised and recovered moderately, while emerging markets such as the Chinese mainland and India gained momentum through new product issuance, expanded asset classes and deeper institutional participation.

In addition, ESG disclosure, operational efficiency and asset quality are becoming increasingly important differentiators for investors across Asia’s REIT markets.

The Chinese mainland remained one of Asia’s most significant REIT growth stories, contributing 21 of the 27 new listings in Asia between the end of 2024 and March 2026. This far outpaced new listings in Thailand, Japan, Malaysia and South Korea, underscoring the Chinese mainland’s dominant role in driving growth in the region’s REIT market.

As of March 31, 2026, 79 public infrastructure REITs were listed on the Chinese mainland, with a cumulative issuance value of approximately $31.3 billion (RMB 215.5 billion) and a combined market value of $32.1 billion (RMB 221.3 billion).

“Looking ahead, we expect the Chinese mainland and India REIT markets to remain the region’s key growth engines, while established markets focus on operating efficiency, capital structure and selective portfolio expansion. The opportunity set is becoming broader, while investors will be increasingly discerning about income resilience, operational efficiency, ESG performance and the ability of managers to create value through active asset management,” said Catherine Chen, Research Director, Asia Pacific, at Cushman & Wakefield.

A key development supporting the Chinese mainland market was the launch of the commercial real estate REIT pilot programme in late 2025, which marked a major broadening of the market beyond infrastructure. Eligible assets were expanded to include offices, shopping malls, hotels, outlets and mixed-use commercial properties, creating a new capital recycling channel for stabilised operating assets.

“The Chinese mainland REIT market is moving into a more sophisticated phase. Regularised infrastructure REIT issuance has established scale and investor familiarity, while the commercial real estate REIT pilot programme introduces a powerful second growth pillar. By opening the market to a wider range of income-producing properties, the new framework can support asset revitalisation and optimise capital, but long-term performance will increasingly depend on asset quality, operating capability and ESG credentials,” said Andrew Chan, Managing Director, Head of Valuation & Advisory Services, Greater China, at Cushman & Wakefield.

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Across the mature markets, Japan, Singapore and Hong Kong recorded market value growth of 12%, 14% and 8%, respectively, between the end of 2024 and March 2026, reflecting a period of steady expansion. Japan benefited from recovering office fundamentals and strong hotel performance, while Singapore entered a vigorous acquisition phase, and Hong Kong recorded a valuation recovery alongside policy initiatives designed to strengthen liquidity.

Data centre and hospitality REITs are expected to remain highly visible, supported by AI-led digital infrastructure demand and a recovery in tourism. M&A and asset acquisitions should also remain active as managers pursue scale, diversification and portfolio quality.